Wearside furniture retailer ScS has been provided with a new £12m funding package by Lloyds Bank Commercial Banking to support its return to the stock market.
The Sunderland-headquartered firm – one of the UK’s largest retailers of upholstered furniture and floorings – launched it first day of trading on the London Stock Exchange last week through its private equity owners Sun European Partners LLP.
The firm aims to raise £35m for its private equity owners, which acquired the business in 2008.
Lloyds Bank’s North East-based mid markets and acquisition finance teams has delivered a revolving credit facility to the retailer, which ScS will use to support working capital as a newly-listed business.
Following Sun European Partner LLP’s acquisition, the directors of ScS have implemented a strategy aimed at increasing sales through initiatives such as the introduction of flooring, operating House of Fraser’s concession stores and the introduction of third party brands.
The strategy has resulted in ScS recording revenue growth of 23.6% in the last two years, while also growing its market share to 8.7%.
Founded in the 1890s, ScS operates 97 stores across the UK and 30 House of Fraser concessions, as well as online sales channels.
The vast majority of its sofas, chairs and corner units are made to order and sourced from UK-based suppliers.
Ron Turnbull, chief financial officer at ScS, said: “This new funding underpins the confidence felt throughout the business in recent years and further strengthens our financial position.
“With the support of Lloyds Bank post-IPO, we have a solid platform from which to capitalise on opportunities presented by the recovering economy.”
Andrew Hopper, relationship director at Lloyds Bank Commercial Banking, said: “ScS has been on a steady upward trajectory in recent years, with economic confidence leading to increased consumer spending.
“An uptick in the housing market has also boosted ScS’s fortunes and the positive reception from investors to the IPO shows a wider confidence in the business.
“We are pleased to be supporting ScS and its ambitious management team in this next stage of growth.”
Credit and debit card acceptance facilities for ScS’s retail estate and online store are being provided by Lloyds Bank Cardnet and legal advice is provided by Ashurst LLP.